CONTENTS
PAG E 28
PAG E 5
We have now committed to own and
operate 224 wind turbines around the
world. It’s part of our plan to become
energy independent by 2020, producing as much renewable energy as we
consume.
Growing in a responsible and sustainable way is about making long-term
investments — in our business, our
products and the planet.
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T HE IKE A V ISION AND BUSINESS IDE A
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OUR ROOT S
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A MESSAGE FROM PE T ER AGNEFJÄL L
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THE YE AR IN BR IEF
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D E M O C R AT I C D E S I G N
1 7
S U S TA I N A B L E G R O W T H
2 2
A G R E AT P L A C E T O W O R K
2 6
PEOPLE & PL ANE T POSI T IVE
3 2
F INANCE
3 6
GROUP MANAGEMEN T
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I K E A G R O U P AT A G L A N C E
PAG E 39
Last year, sales totalled €28.7 billion.
Get a quick overview of all the key
facts from FY14 in the “At a glance”
chapter.
PAGE 12
We’re creating more limited collections than ever before! Not only does
this offer our customers more unique
products, it gives us the opportunity
to collaborate with world-renowned
designers and test new ideas.
IKEA of Sweden AB is assigned by Inter IKEA
Systems B.V. to define the IKEA product
range and develop the IKEA products.
The financial year 2014 of the IKEA Group (INGKA Holding B.V. and its
controlled entities) refers to the period between September 1, 2013, and
August 31, 2014.
The IKEA Group franchises the IKEA retail system and methods from Inter IKEA Systems B.V. in the Netherlands. Inter IKEA Systems B.V. is the
owner of the IKEA Concept and is the worldwide IKEA franchisor.
COVER IMAGE:
Pieces from the limited edition IKEA PS collection launched in April, 2014.
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T HE IKE A V ISION AND BUSINESS IDE A
Great design, quality and
affordability for all
“To create a better everyday life for
the many people”. This is the IKEA
vision and it guides us in every aspect
of our business, from design idea to
production, right down to the store floor
and beyond.
We work hard as a team to offer
quality products at affordable prices
for our customers. We do it by optimising our entire value chain. We build
long-term supplier relationships, invest
in new technologies, create efficient
production techniques and produce
large volumes. Our vision goes beyond
home furnishings — we want to create
a better everyday for all people touched
by our business.
Watch “The Way We Work” to see
the big picture.
Our business idea is to
offer a wide range of
well-designed, functional home furnishing
products at prices so low
that as many people as
possible will be able to
afford them.
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OUR ROOT S
We come from the farmlands of Sweden
but our values are universal
“I feel good working for IKEA because the values correspond with
my own”, says Tanja Krnić, an IKEA
Croatia
co-worker.
“Especially
‘dare to be different’. At IKEA, I’m
given the opportunity to try new and
different things.”
Tanja started out as an accountant at
the Service Office in Zagreb. A year into
her role, when the country began hiring co-workers for their first IKEA store,
Tanja saw an exciting opportunity. With
her outgoing personality and friendly
nature, she wanted to be closer to customers, so she applied for a transfer
and now works at the store.
“Part of my job now is welcoming our
customers with a smile as they enter
the store. This is a great role to have.
Our customers feel really, really welcome when they enter, and when they
come back, they remember me and say
‘hello, how are you?’
“Not so long ago, this place was just
gravel, and now we have this great new
store. To open the first store in Croatia
was an honour, and also a big responsibility. We all worked hard together,
were encouraged to use our common
sense and were driven by our enthusiasm. This made everything easier and
any problem possible to solve.”
IKEA was founded in the farmlands of
Småland, where people had to work together, using innovation and resourcefulness to survive and thrive. Today,
Smålanders are still known for their ingenuity and determination.
“At IKEA there’s an
acceptance of people’s
differences, and
there’s no hierarchy.
We work together with
understanding and
tolerance.”
Tanja Krnić, Customer Relations
Co-worker, IKEA Zagreb, Croatia
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A MESSAGE FROM PE T ER AGNEFJÄL L
Growing with a positive impact
on people and the planet
Last year was a good year for the IKEA
Group as well as a very inspiring first
year for me in my new job. We have an
ambitious growth strategy and a commitment to become people and planet
positive. In the past financial year we
reached some important milestones
and we can really see results when we
are working together with a shared vision and common goals!
Sales increased by 5.9% (adjusted
for currency impact) from last year to
€28.7 billion. Our total revenue, which
includes the rental income from our
shopping centre business in Russia,
increased by 2.8% to €29.3 billion.
We gained market share in almost all
markets and entered a new country:
Croatia.
All in all, we had over 700 million
visits to our stores, and more than
1.5 billion visits to our websites. I am
happy to see increased growth in all
sales channels: in existing stores, with
the opening of new stores and in ecommerce.
Our customers also tell us they care
about climate change and want to live
more sustainably. Through the amount
of visitors in our stores and online, we
have unique possibilities to inspire and
enable millions of people to live a more
sustainable life at home by offering
Get all the FY14 highlights from Peter in
our Yearly Summary film.
sustainable and energy-saving solutions, affordable to all.
We also want our own operations to
be sustainable, and we have a goal to
become resource and energy independent. By 2020 we will produce as much
renewable energy as we consume in
our operations. We already produce energy from our own renewable sources
equivalent to 42% of our total consumption.
All of our fantastic co-workers
made this happen, and we want
them to share the success of
IKEA. One way to say thank you
is through our loyalty programme
Tack!, which we introduced during
2014, and the One IKEA
Bonus programme.
Looking ahead, nurturing and developing the IKEA culture and building
on our entrepreneurial spirit is vital for
our future success. By working closely
together, we can create an even better
IKEA for our customers, co-workers,
suppliers and society at large.
Peter Agnefjäll,
President and CEO, IKEA Group
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THE YE AR IN BR IEF
A COLLABORATIVE COLLECTION
WITH A SOCIAL MISSION
In FY14 we launched MÅNGSIDIG, a
limited collection of handmade textiles
developed with social entrepreneurs in
India. MÅNGSIDIG is just one of several
similar collaborations around the world.
Social entrepreneurs use business to
create change and reduce poverty in their
communities, so by working with them,
we’re supporting social development
while producing unique products for
our customers.
The year
in brief
Find out more about social development and design
on page 30.
224
WIND TURBINES
The IKEA Group is now committed
to own and operate 224 wind
turbines throughout the world and
there are 700,000 solar panels
installed on our buildings.
IKEA US ADJUSTS WAGES
IKEA GROUP MAKES LARGEST
RENEWABLE ENERGY INVESTMENT TO DATE
IKEA US announced a new hourly
wage structure that focuses on
the needs of co-workers instead of
market standards. Effective January
2015, wages will be set according to
the local living cost.
We committed to our first wind farm
investment in the US in FY14 which
was our largest renewable energy investment globally to date, bringing us
closer to our goal of energy independence by 2020.
Find out more on page 25.
Find out more about our plans for energy independence on page 28.
5.9%
When the new wind farm is fully
operational it’ll produce 130%
of the total amount of energy
IKEA US operations consume.
SALES UP IN FY14: NEW
MARKETS AND NEW STORES
THE LIFE AT HOME REPORT
GOES PUBLIC
Last year we shared our first Life at
Home Report. We launched an interactive website featuring the findings
of an in-depth survey looking into
people’s morning routines. Data was
collected from 8,000 respondents in
eight cities throughout the world.
See page 10 for more about the report.
The IKEA Group sales increased 5.9%
in FY14 (adjusted for currency impact). We opened 12 new stores in
ten markets, including our first store
in Croatia, which 68,000 customers
visited in its first four days. We also
opened a city centre store in Hamburg Altona, Germany, where customers can use our cargo bikes for free to
take their purchases home. In total,
the IKEA Group has 315 stores in 27
markets as of August 31, 2014.
FASTER AND SIMPLER ASSEMBLY
When tasked to make assembly easier for customers, two
construction technicians in Älmhult found inspiration in an old idea.
Göran Sjöstedt and Anders Eriksson took a traditional wooden plug
technique and adapted it for today’s hi-tech production methods. The
result? Quicker and simpler assembly in just a few steps. The new
REGISSÖR storage series features this innovative assembly solution.
Find out more on page 13.
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THE YE AR IN BR IEF
100,000 JOB APPLICANTS
FOR NEW IKEA STORE
IN SPAIN
While IKEA is a popular workplace,
the number of applicants to our new
store in Valencia, Spain, exceeded our
wildest expectations (and temporarily
shut down our servers). A potential crisis situation turned positive when the
IKEA Spain team emailed all 100,000
applicants and followed up with 65,000
phone calls. The IKEA Valencia Alfafar
store opened in June and is one of our
best selling stores in Spain.
We launched Tack!, which is Swedish
for “thank you”, to recognize each
co-worker’s contribution to our company and to share our success with
them. All co-workers who’ve been
with the IKEA Group for at least five
years qualify for this contribution to
their pension plans.
The new IKEA Industry factory in
Malacky, Slovakia, is producing
unique lightweight boards that are
30% lighter than the previous ones.
These new boards are less expensive
to produce and use less raw material.
We can also ship more of them per
truck (30% more) which lowers
emissions and transport costs. And,
lighter boards make products that
are easier for our customers to
handle.
IKEA Japan breaks new ground
in the country by giving parttime workers the same benefits
as full-timers. As a result, job
applications doubled.
Find out more on page 25.
BRINGING LIGHT TO
REFUGEE CAMPS WITH
OUR CUSTOMERS’ HELP
NEW LOYALTY PROGRAMME
FOR CO-WORKERS
LIGHTWEIGHT BOARDS SAVE
MONEY AND RESOURCES
IKEA JAPAN SETS
NEW WAGE EQUALITY
STANDARDS
In the first year of our Brighter
Lives for Refugees campaign, IKEA
Foundation donated €7.7 million to
UNHCR to bring solar lighting to refugee camps, making them a safer,
more humane place for the families
who live there. The campaign will run
annually for two more years.
NEW DEMOCR ATIC
DESIGN CENTRE: A PLACE
FOR CURIOSIT Y AND
COLLABOR ATION
The new IKEA Democratic Design Centre that opened in Älmhult harbours
and promotes innovative home furnishing design. Here, researches, designers and engineers from all over the
world come together over every aspect
of product developement, from the
creative phase to the final result (and
for coffee breaks too).
During the campaign, IKEA
Foundation donates €1 for every
LED bulb sold in IKEA stores.
270 MILLION VISITS TO OUR RUSSIAN
SHOPPING CENTRES
Our shopping centre business in Russia, which goes under
the brand name Mega, continues to perform well. In
FY14, the 14 Megas — spread out from Saint Petersburg
by the Baltic Sea to Novosibirsk in Siberia — had around
270 million visits. This means, on average, each citizen of
Russia visits our shopping centres twice a year. Since the
opening of the first one in 2003, there have been 1.6 billion
visits to our shopping centres.
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D E M O C R AT I C D E S I G N
It takes a team of passionate experts
to make democratic design a reality
“Democratic design is the
IKEA vision in action; a
brilliant and challenging
formula that places huge
demands on us. But when we
succeed, we’re unbeatable”
More than 1,000 IKEA co-workers
are constantly working to develop
Tina Petersson Lind,
Range Manager
great designs that are accessible
for as many people as possible
Product development teams work together every step of the way, with each specialist applying their unique skill set to the process.
Democratic design is an idea with
endless possibilities, but it’s not an
easy ideal to achieve. Combining all five
elements — form, quality, function, sustainability and a low price — takes skill and
tough decision-making along the way.
While low price is the backbone of the
IKEA offer, how is it weighed against the
other dimensions? Who decides what’s
good form, and what is quality?
“Quality is also about function,” says
Tina Petersson Lind. As the Range Manager, she works with the definitions around
democratic design everyday. “How far do
you need to pull out a drawer to be able to
view the clothes? Does the shoe storage
work for high boots too? Is it easy to clean
behind the washbasin tap? A product that
is durable, but doesn’t work, is not quality.”
To create a product that embodies the
elements of democratic design, we use
IKEA of Sweden AB is assigned by Inter IKEA Systems B.V. to define the IKEA product range and develop the IKEA products.
the combined knowledge of different specialists in the product development teams
that Tina oversees. From designers and
material specialists to product developers
and our skilled suppliers, everyone contributes to the design process. We believe
in the power of many to create meaning
and value.
“Democratic design is our vision in
action; a brilliant and challenging formula that places huge demands on us. But
Continued on next page...
D E M O C R AT I C D E S I G N
FORM
QUAL I T Y
F U N C T IO N
S U S TA I N A B I L I T Y
A L L AT A
L OW P R IC E
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D E M O C R AT I C D E S I G N
...continued from previous page
when we succeed, we’re unbeatable”, Tina
says.
The joint expertise of the team members is what makes the five dimensions
of democratic design come alive, but we
can’t sit still in the comfort of that. Democratic design demands we keep our ears
to the ground and our eyes on the future.
As the world around us is changing, life at
home is changing too and new needs are
emerging.
“One example of how we work to embrace the changing home is the Home
Smart Collection that’s coming out in April
2015. There’s a real frustration about finding cords and outlets for charging digital
devices at home. So, in the coming collection, we’re integrating wireless charging
of digital devices into some products like
bedside tables.” Tina says.
Tina is proud of products belonging to
the basic range too, going as far as calling
many of them “everyday heroes”.
“Really good everyday home furnishing products are everyday luxuries”, she
explains. And that’s the result of getting
democratic design right.
Some classic basic heroes are BILLY
bookcases, PAX wardrobes, SULTAN
beds, and, more recently, LED bulbs.
With LED, IKEA dramatically lowered the
prices in FY14 so customers could afford
to buy more sustainable bulbs that help
them save money on their household bills
(while doing their bit for the environment
too).
The basic range is constantly being developed, with the goal of improving quality
and function. Like when the new PAX interior came out in FY14, introducing baskets
made with a new technique that punches
patterns through the metal. These baskets are more decorative, and more functional because they minimize the risk of
small things falling through.
“We know that when a home works
better, everyday life becomes a little bit
better”, says Tina. “Beauty, harmony and
comfort are important to the emotional
experience of a home, so they’re a part of
making it work better too.”
i
i
Basic Range
These products are available at all
IKEA stores and are the foundation
for the IKEA range. They provide
customers with long-lasting, quality
products that can be combined with
the rest of the range.
1,002 suppliers in 51 countries
are our partners for growth
We form long-term partnerships
with suppliers: on average 11 years.
Together, we find the best ways to
work. IKEA and its suppliers share
innovations in materials, technology
and production with each other so
we can grow together.
Everyone at IKEA is responsible
for quality
IKEA continues to strive for improvement in every aspect of its business in
order to live up to (and even exceed)
customers’ expectations.
That’s why we’ve implemented new ways
of working in our product development process — ways that have led to big improvements, including the quality of our products.
Each and every co-worker has to take
responsibility for their daily tasks in order to
improve quality.
“When every co-worker takes personal
responsibility at every stage, that’s when we
truly create a movement”, says Karen Pflug,
Quality Manager.
Quality is about more than just the product; it’s about the total customer experience.
It includes visiting the store, shopping online,
home delivery and assembly. It’s also about
the availability of helpful and knowledgeable
IKEA co-workers throughout the store and
creating beautiful home furnishing solutions
that truly inspire customers.
When we’re successfully balancing all
five dimensions of democratic design (see p.
8), that’s when we create beautiful products
that are built to last, fit for purpose and, most
importantly, have great value for money.
We’re applying the same principle and
process improvements to our supply chain,
putting more responsibility on suppliers to
secure quality in their day-to-day operations,
rather than relying on an audit at the end of
the line.
“We want to only create products we,
and more importantly, our customers, love”,
says Karen. “We should be 100% proud of
our offer and the entire customer experience. If we’re not, we need to ask ourselves:
how do we change it? How can I make a difference?”
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D E M O C R AT I C D E S I G N
In-depth research gives us unique
insights to how people live
# LifeAtHomeReport
The IKEA Life at Home report shares our
findings on global morning routines
Through an in-depth survey, we collected data on thousands of people’s morning routines in Shanghai, Berlin, London, Moscow, Mumbai, New York, Paris and Stockholm.
To create products that make life at
home better, we need to understand
how people live. That’s why we visit
thousands of homes every year and invest lots of time and effort into research.
It’s our ambition to continuously develop
quantitative and qualitative methods that
give us the knowledge to create products
that meet the needs, dreams and aspirations of customers. And, though we’ve
been conducting in-depth research and
participatory studies for decades, last
summer was the first time we made our
findings public (but it won’t be the last).
When we published our Life at Home
Report through an interactive website,
people from all over the world dove into it.
“We want to show that we’re serious about
truly understanding people’s everyday life
situations, what works and what doesn’t”,
explains Mikael Ydholm, the energetic Research Manager who oversees the team of
curious and studious individuals digging
into life at home.
“And, we decided to share because
we at IKEA have decided to open up behind the scenes”, he explains. “In addition, we see that we create an interest
in life at home”.
The Life at Home report released in
June 2014 did stir an interest. It took a
deep look at people’s morning routines
in eight major cities around the world —
Continued on next page...
“We want to show that
we’re serious about truly
understanding people’s
everyday life situations,
what works and what
doesn’t.”
Mikael Ydholm, Research Manager
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D E M O C R AT I C D E S I G N
...continued from previous page
from waking up to walking out the door —
and how their morning habits impact their
days. Full of infographics, the report also
includes an interactive microsite where
users can mix and compare data, breaking
down results in different cities and different topics.
The job of Mikael and his team is
never done. “I’m paid to be curious
about the unknown”, he says. “To
question truths and what’s established, in order to democratize and
renew is a mission that is highly supported in our vision
and values”.
There are several ways IKEA stays informed on how life at home evolves. Like
many other retailers, we use trend reports
to follow more fast-moving changes in society. We also have our own trend spotters
in cities like Moscow, Shanghai, Philadelphia and Barcelona, checking out trends
within home furnishing, fashion, food,
art and music. In addition to drop-in visits to people’s homes, an IKEA team can
spend several weeks with a family — testing products and solutions in all areas of
the home, while asking questions, turning
perspectives, and noticing latent needs.
“The research team has a mission to
challenge, but also to support leaders in
making better informed decisions”, says
Mikael. “To gain knowledge and break new
ground”.
One area we’ve begun to explore, in
collaboration with the Mobile Life Centre
at Stockholm University, is how mobile
technology affects us in the home. Today’s
technological advances create new opportunities for our designs and IKEA wants
to lead development, delivering products
and solutions no one else has. We’ve been
doing this for a long time, but today we’re
more systematic. Our knowledge platform
is our capital, a value that comes from 6070 years of home furnishing competence.
And still, we’re always asking questions. “A lot is possible, but does it help
people?” Mikael asks. “One example is the
mystery of disappearing socks, how can
we solve that? Or how do you discover
that a red sock has ended up in the white
wash? These are hands-on needs that are
possible to meet with in-built smart technology”, he says.
i
Facts from the report:
One in four people thinks the
morning is the most stressful
time of the day.
It’s as common to work in bed
in the morning as it is to hit the
snooze button.
57% of Berliners spend an average of 14 minutes showering or
bathing — the longest time compared to other surveyed cities.
Find more morning facts and explore
the Life at Home report at
lifeathome.ikea.com.
The sister and brother design team of
Marianne and Knut Hagberg pose with
products from the NORNÄS collection
they co-created with IKEA.
Customers can take home a piece
of Sweden’s natural beauty
In FY14, the NORNÄS collection was
launched worldwide, giving customers
the chance to own a bookshelf, bench
or sturdy dining table made of untreated pine from slow-growing forests in
northern Sweden.
The collection was developed right on the
factory floor by a small dedicated group of
designers and production specialists working
at IKEA Industry in Lycksele, a Swedish town
nestled in the north.
“NORNÄS is a unique collaborative project”, says Knut Hagberg who, along with his
sister Marianne Hagberg, worked as a design-
er on the project.
“We were all equally committed to achieving a common goal, and had great fun along
the way.”
“It’s exciting to work with northern Swedish pine”, says Emil Olofsson, a technical support co-worker at IKEA Industry. “And it’s
wonderful to be the world’s only manufacturers of NORNÄS.”
Designers Knut and Marianne wanted to
invite customers to use their own creativity
too, so the untreated furniture pieces can be
glazed, varnished, waxed, oiled or painted according to preference.
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D E M O C R AT I C D E S I G N
Photograph by
Leslie Williamson
“It’s been fascinating to collaborate with IKEA experts, with their
knowledge, skills and incredible
experience. Together, we’ve explored
ways to add the human touch to the
industrial design process. We have
the same drive to understand and
respond to the evolving concept of
home; a joint curiosity of the way
people live. And above all, we share
the value of democracy. Good design
is not necessarily expensive; it is
clever and requires thought and understanding of human behaviour.”
Creating more limited
collections than ever before
Ilse Crawford, Designer
Ilse Crawford’s collaborative collection with IKEA features earthy tones and cork, a renewable material. The collection is set for release in August 2015.
In the past, one to two limited design
collections a year have been released
to complement the basic range of
IKEA furniture. Now, customers can expect us to launch at least 10 unique and
dynamic limited collections every year.
Working with limited collections gives
us the freedom to be innovative and cocreate with world-renowned designers
such as Ilse Crawford and ACNE R&D.
Each collection is one-of-a-kind and pre-
sents the opportunity to work with creative artists and experts of all kinds, like
glass blowers, street artists and wood glue
specialists. It also makes it possible to experiment with new production methods
and using materials in new ways.
“It’s a great way of testing ideas”, says
Marcus Engman, Design Manager. “Limited collections let us work fast. By getting
products quickly into the range, we can
quickly follow up on our customers’ reac-
tions”, he explains.
In April, IKEA opened its new Democratic Design Centre in Älmhult, a place
created for openness, transparency, and
the sharing of ideas throughout the product development process. It’s meeting
ground where people from different countries can come together to imagine and
create IKEA products.
“By working together in more fun and
exciting ways, we create vitality. Co-crea-
tion is a together thing, it gives energy”,
says Marcus. “Here everybody can walk
around, meddle, and share ideas. This is
part of the IKEA greatness: sharing. And
in the years to come, we’ll involve our
suppliers and customers even more”, he
adds.
Co-creation is at the core of many of
the limited collections, including those
from our partnership with social entrepreneurs, like the women’s co-operatives
Continued on next page...
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D E M O C R AT I C D E S I G N
Marcus Engman, Design Manager.
REGISSÖR products assemble using an innovative wooden plug technique that makes putting up a wall unit like this faster and easier.
...continued from previous page
find new technical solutions too. In FY14,
IKEA technicians introduced a new technique that dramatically cuts product assembly time.
“We found a way of industrialising an
old technique using wooden plugs, now
being used in the REGISSÖR collection.
The boards are simply popped together
with pre-fitted plugs placed at 45-degree
angles. It makes more beautiful corners
for the same price and it’s much easier
in India who helped design and produce
MÅNGSIDIG, a hand-crafted textile collection. Co-creation is also at the heart of our
design collaborations, where we are collaborating on unique, new collections with
talented and inspiring people from all over
the world.
A more open environment doesn’t just
lead to more creative designs, it inspires
us to always try new ways of working and
to take down a shelf unit and assemble it
again when moving”, Marcus says.
As society is moving towards more collective ways of doing things, so is IKEA.
People want to discuss and learn together,
it makes everybody better.
“More and more designers and artists
get in touch with us and want to cooperate. They like the width of our offer and
the possibility to reach many people”,
Marcus says.
i
Limited Collection
These products are released in specific markets for a limited amount of
time. They’re created through collaboration with talented and inspiring people from all over the world
and are a result of exploring new
ways of doing things.
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D E M O C R AT I C D E S I G N
The PS pendant lamp: high-end
design at an affordable price
This lamp — part of the global PS
launch on April 1, 2014 — has become
widely popular worldwide.
“I wanted to create a lamp that was
able to change form”, says IKEA designer
David Wahl, based in Shanghai. “Starting
out with a flower sketch in my computer,
our product development team soon decided to go for something more daring.”
So, he sketched a new version with
inspiration from outer space, a solution
loved by many people who grew up with
the Star Wars movies as the lamp reminds
them of Darth Vader’s death star.
The main idea behind the lamp is to
be able to dim the light manually by
changing the shape of the shade.
When closed it’s a glowing ball giving
off a soft mood light, then, by pulling
a string, it opens up and spreads the
light around the room.
What started out as a sketch of
a flower turned into a science
fiction-inspired ball of fire
“The trickiest thing was to create a
simple and durable mechanism using as
few parts as possible, while making the
lamp easy to assemble”, David says. The
affordable price was partly made possible
thanks to the team minimising the number of the lamp’s pieces (there are not as
many as one might think from looking at
it).
“Anyone can create a complicated solution, but to make it simple and affordable with great function is something else”,
David says. “Together, we’re such an engaged team, having incredible fun at work.
Everybody contributes and is passionate
about what they do”, he adds.
The team worked closely together with
the Chinese supplier throughout the process. And our own skilled technicians supported with input on construction, choice
of materials, prototype adjustments, and
not least the task of optimising the amount
of lamps that fit on a pallet — size adjustments can save many shipping containers
every year.
We also avoided mixing materials in
the lamp’s construction to make it easier
to recycle. “But here we still have some
things to solve”, David says, going on
to explain that the glass fibre armoured
plastic used (which ensures durability and
quality) is harder to recycle.
But before customers recycle the PS
lamp, David and his team want to ensure
they get many years of service. That’s
why the team designed a built-in feature
that makes it possible to change the cord.
“Our product developer really tormented the prototypes in our testing room by
occasionally dashing up in the midst of our
meetings to frantically pull the strings”,
David says.
He’s confident the cord will last a long
time, but should the unlikely happen, it’s
possible to buy a venetian blind string and
fix a new cord.
“I actually sacrificed a number of blind
strings from our lightening department to
make sure this is possible — hope nobody
has noticed”, David laughs.
1 5
D E M O C R AT I C D E S I G N
Turning children’s dream
soft toys into reality
Last year, eight IKEA markets invited
children to let their magical imaginations
run free in the first ever “Create Your Own
Dream Soft Toy” drawing competition
From the hundreds of submissions,
eight dream drawings were chosen
and the winners each received their very
own unique soft toy created from their design.
“Adults don’t make drawings like these.
The children’s dream soft toys can have
wings, five legs, happy colours and unique
expressions”, says Carin Wengelin, information manager at Children’s IKEA. “Our
supplier transferred the drawings into soft
toys in a wonderful way, without compro-
mising an inch from the original drawings”,
she adds.
We were so inspired by the children’s
creativity that we’re now making the competition global. This time, the winners will
have their drawings turned into the soft
toys that will be on sale in IKEA stores
starting November FY15, just in time for
the annual Soft Toys for Education Campaign. During the campaign, for every soft
toy sold, the IKEA Foundation donates €1
to programs that promote children’s edu-
cation around the world.
“The best thing is that children are
helping children”, says Bodil Fritjofsson, a product developer for Children’s
IKEA. “The ten winning drawings will
become real soft toys that in turn enable more children to go to school.”
To find out more about the Soft Toys
For Education Campaign, visit
www.IKEAFoundation.org.
“Adults don’t make
drawings like these. The
children’s dream soft toys
can have wings, five legs,
happy colours and unique
expressions.”
Carin Wengelin, Information Manager,
Children’s IKEA
1 6
D E M O C R AT I C D E S I G N
Before makeover
IKEA co-workers tackle real-life challenges
on home makeover tour
#I K E A H o m eTo u r
After makeover
From left: Jonathan, Keith, Elizabeth, Robin and Brooke are the IKEA US Home Squad who brought home furnishing solutions to people across the country.
In February of 2014, five IKEA coworkers left their regular jobs at
stores around the US to hit the road
for a year as the “Home Tour Squad”.
Their mission? Help Americans tackle
their everyday home furnishing challenges
through tips, ideas and home makeovers.
“We wanted to connect emotionally
one-on-one in real time, speaking directly
to our customers, so we came up with the
home tour”, says Julie Foor, IKEA Home
Tour project manager.
To keep the project simple, all IKEA,
and true to its grass roots inspiration, the
selected team of home furnishing experts
was trained to perform on camera, as well
as shoot and edit their home makeovers.
The videos were shared on the IKEA
US YouTube channel as well as other social
media platforms to provide inspiration for
homeowners everywhere.
One of many special moments on the
tour involved a single parent in Atlanta,
who needed help organising her workspace for professional yarn work, needlepoint and sewing. The team created
a beautiful and functional solution using
kitchen cabinets, integrated lighting, and
glass doors that put the yarn on display
but kept it tucked away.
“She started crying when she walked
into her new craft room. And so did we”,
says Brooke Nelson, a squad member
from the IKEA Twin Cities store in Saint
Paul, Minnesota. “Overall, it’s been fantastic meeting all wonderful families, together solving their small space needs while
leaving them feeling ‘I can do this too’.”
See all the Home Tour Squad makeovers
and find other squad tips on YouTube at
www.ikea-usa.com/hometour
1 7
S U S TA I N A B L E G R O W T H
Growth and a continued
commitment to sustainable
investments
During the first four days it was open, more than 68,000 customers visited
IKEA Zagreb, our first store in Croatia. The most popular purchase over
those four days? A classic IKEA favourite: BILLY bookshelf.
The IKEA Group continues to grow
on all fronts: through existing stores,
the opening of new stores and online.
We’re striving to be more accessible and affordable. By developing better
products at lower prices, improving our
existing stores, opening new stores and
expanding our e-commerce offer, we plan
to reach €50 billion in sales by 2020.
Growing in a responsible and sustainable way is about making long-term investments — in our business, our products and
the planet. Our guiding financial principle
is to earn money before we spend it, which
has given us the independence and flexibility to work and think long-term. And
while growing, we want to have a positive
impact on people and the planet.
In FY14 we made considerable investments in renewable energy as part of our
commitment to produce as much renewable energy as we consume by the end
of 2020. We invested in our first US wind
farm, our largest single renewable energy
investment globally to date. When fully
operational, it will generate the equivalent
of 130% of the energy IKEA US consumes.
We want our customers to be able to
live a more sustainable life too. One way
we’re doing this is by investing in lowering the price of energy saving products,
like LED lighting. That way, many more
people can afford LED bulbs and use them
to reduce their energy bills (while saving
on the planet’s resources too). In FY14 we
saw a 58% increase in sales of products
that contribute to a more sustainable life
at home (compared to FY13).
Last year, we had more than 700 million visits to IKEA Group stores, an increase of 4.7% over the year before. Ecommerce showed strong growth too.
Today, online shopping is available in 13
markets and will be rolled out to all markets over the next few years.
We also increased inventory levels
during FY14 to improve product availability, and we’re improving services such as
in-store picking and delivery.
In the past year, the fastest growing
IKEA Group market was China, where
increasing customer demand and new
stores drove sales. The North America
market remained healthy and Europe’s
upward trend continued. All in all, we grew
in almost all our markets.
The IKEA Group has 315 stores in
27 markets and operations in more
than 40 countries all over the world.*
Looking to FY15, our first store in
South Korea opened (December 2014)
and we’re moving ahead with our retail
plans in India. There are great opportunities for growth because people around the
world appreciate good design and function
at affordable prices. We are well equipped,
with our strong business model and fantastic team of dedicated co-workers, to
continue to grow in a sustainable way.
* As of August 31, 2014.
1 8
S U S TA I N A B L E G R O W T H
Growing our business by...
...improving existing
stores and opening
new ones
...integrating
manufacturing
In FY14 we continued the integration of IKEA Industry with the IKEA
Group. We expanded capacity in resource-efficient and sustainable production. Further steps were taken in the value chain to develop competitive products
on the factory floor.
...developing
the range
...simplifying
shopping
During the year, we also announced
that we’ll be introducing new collections more frequently and engaging
in collaborations with well-known
designers both globally and locally.
Looking at the IKEA range, FY14
growth was driven by bedroom and bathroom solutions, and by Children’s IKEA.
We are continuously developing the
range and our focus is, as always, on creating inspiring, functional and affordable
products for as many people as possible.
“We want to simplify shopping and
offer value for time to our customers
— it’s about using all our knowledge
about life at home to ensure that
IKEA is there, where- and whenever
our customers want. Our online
business continues to drive growth
here in the UK and now makes up
10% of our overall sales. We are
excited to see that this is not at the
expense of our stores, in which we
had a 5% increase in visitors over
the past year.”
Read more about democratic design on page 8.
Gillian Drakeford, Country Retail
Manager, UK
In August we opened our first
IKEA store in Croatia. In total,
we opened twelve new stores
and had one relocation last year:
Beijing, China
Chongqing, China
Zagreb, Croatia
Aarhus, Denmark (relocation)
Clermont-Ferrand, France
Hamburg, Germany
Lübeck, Germany
Pisa, Italy
Sendai, Japan
Tokyo, Japan
Valencia, Spain
Borlänge, Sweden
Miami, US
1 9
S U S TA I N A B L E G R O W T H
China — the strongest growing
market for IKEA in FY14
“We’re really investing
in lower prices, and this
especially goes for basic
everyday needs such as
cooking, eating and bedroom
products. I’m very proud
that IKEA is so committed to
the Chinese people.”
Flora Li, Country Sales Manager, China
There is a growing demand and excitement for IKEA in the Chinese market. In FY14 we opened a store in Chongqing and our second IKEA store in Beijing.
Rapid urbanisation in China stimulates
consumer spending in big cities, where
a growing middle class boosts the demand for housing and home furnishings. Put a specialised team of IKEA coworkers dedicated to the Chinese consumer
into the mix and it’s no wonder China was our
fastest growing market last year.
In FY14 we opened a second store in Beijing and one in Chongqing, a city of 10 million
people in central China.
“Our store in Chongqing is situated in a new
part of China for IKEA, and it’s been a huge
success. It’s a very busy store”, says Flora Li,
Country Sales Manager for China.
The stores inspire customers not only by
providing a smooth and fun shopping experience, but also by presenting our range in a
way that’s relevant to the people of China.
Everywhere, people have the same basic
needs, but a key to our success is understanding the different living situations and
culturally specific needs of people across the
globe. In China, making IKEA easily accessible is important and there’s a strong focus on
becoming more affordable in the market too.
“We’re really investing in lower prices,
and this especially goes for basic everyday
needs such as cooking, eating and bedroom products. I’m very proud that IKEA is
so committed to the Chinese people”, Flora
says. “We extend our offers to fit the Chinese
way of cooking and eating, such as adding
Chinese rice bowls”, Flora adds with a smile.
Looking ahead, the property sector in
China is slowly cooling down, while the job
market is solid, incomes are increasing and
people, overall, are optimistic.
“The speed of change here is extreme,
so we must stay alert. Our spirit is to always
look for opportunities and continuously show
our uniqueness. I’m proud of our co-workers’
commitment, the positive energy here is really special”, Flora says.
2 0
S U S TA I N A B L E G R O W T H
Sakie Sato survived the earthquake
in Japan. The tsunami swept her
more than two kilometres away and
she lost all contact with her family.
Thankfully her children and husband
survived, and today Sakie works at
the IKEA Sendai store.
During the first 18 months after the
quake, co-worker volunteers used their
free time to visit nurseries and preschools
in affected areas with the “Happy Play
Bus” packed full with soft toys and playthings for children, many of whom could
only play indoors due to the fear of radiation from nearby Fukushima.
“Everybody at IKEA chipped in and
helped out wherever they were needed”,
says Mikael.
IKEA Group supports quake-stricken
community in Japan with new store
and long-term support
In July 2014, the IKEA Group opened
a full-size store in Sendai, Japan, creating employment opportunities in a
region that, three years ago, was devastated by a massive earthquake and
tsunami.
“We had other cities lined up in our
expansion plan, but after the disaster we
decided to open in Sendai as soon as possible to create new possibilities for the
people in the community and help kick off
the economy”, says Mikael Palmquist, then
country manager in Japan and today IKEA
Group regional manager for Asia. “We did
what felt right and just went for it.”
Since the quake, IKEA Japan has been
deeply involved in supporting the area. It
began with immediate emergency help,
such as food, water, blankets, towels,
torches, and starter kits of home furnishings essentials for more than 7,000 families in the region. Then, IKEA Japan quickly opened a non-profit IKEA mini shop in
Sendai for people in the area who needed
to replace the home furnishings they had
lost. Soon, IKEA Japan developed a longterm plan for the region, which includes
the IKEA store opening and working with
the East Japan Children Project to support
children affected by the disaster.
“It was important for us to show that
we wouldn’t leave, but stay put and be
supportive. Early on, we had the dream of
opening a full-size store and hire local coworkers to show our long-term support”,
says Mikael.
Through the East Japan Children
Project, IKEA Japan will donate 250
million yen over a five-year period
to help children in the affected area,
focusing on play, childcare and educational opportunities.
2 1
S U S TA I N A B L E G R O W T H
Retail, distribution
and production
RUSSIA
EUROPE
222 Stores
59% Purchasing
value
20 Distribution
centres
36 IKEA Industry
production units
14 Stores
3% Purchasing
value
1 Distribution
centre
5 IKEA Industry
production
units
NORTH
AMERICA
51 Stores
3% Purchasing value
7 Distribution
ASIA
23 Stores
35% Purchasing
centres
Purchasing value is the
total volume of articles purchased from suppliers. It
includes both our own IKEA
Industry production units
and external suppliers.
Percentages are rounded
figures and therefore don’t
sum to 100.
1 IKEA Industry
value
production unit
5 Distribution
centres
2 IKEA Industry
production
units
SOUTH
AMERICA
1% Purchasing
value
It takes a well-planned global network to manufacture and distribute
IKEA products in an efficient and
cost-effective way. We have facilities all over the world, each playing
an important role in making IKEA
products available to customers.
Our 1,002 suppliers, including our
own IKEA Industry production units,
manufacture IKEA products and
either send them directly to the store
for sale or on to a distribution centre,
where stock and store deliveries
are managed.
AUSTRALIA
5 Stores
1 Distribution
centre
315
IKEA Group
stores
located in 27
countries*
1,002
suppliers in
51 countries**
59%
of production
takes place in
Europe
*
At the end of FY14, there was a total of 361 IKEA stores in more than
40 countries operated under franchise agreements with Inter IKEA
Systems B.V. Of these, 46 stores were operated by franchisees outside
the IKEA Group.
**
Includes IKEA Industry which accounts for 12% of the total
production with 44 production units in 11 countries.
2 2
A G R E AT P L A C E T O W O R K
”Tack! is a fantastic
programme. Development
opportunities are what
really motivates me to be
with IKEA. And money is an
important bonus when it’s
earned with hard work. I
think Tack! is a nice gift from
IKEA to all of us.”
Tack! says thank you to
IKEA co-workers
Kristina Melnikova, Sales & Supply
Support Specialist, IKEA Khimki, Russia
All co-workers who’ve been with the IKEA Group for at least five years are eligible for Tack!, which is a contribution to their pension plans.
The hard work and dedication of our
147,000 co-workers is one of the main
reasons for the positive growth of our
company, which is why we decided
to share the company’s success with
them.
In FY14, the IKEA Group launched a
loyalty programme that goes beyond our
existing pension plans in rewarding our
co-workers for their contributions. The programme is called Tack!, which means thank
you in Swedish. Its creation is inspired by
IKEA founder Ingvar Kamprad, who wished
for the success of IKEA to be shared among
all co-workers equally.
“Everyone of us, no matter what position we hold at the IKEA Group, contributes
to our growth and is important to our continued success”, says Petra Hesser, IKEA
Group HR manager. “We want all our coworkers to feel appreciated. We want them
to stay and grow together with us.”
With Tack!, all fulltime co-workers within
a country, regardless of position and salary
level, receive the same contribution to their
pension plan, while part-time co-workers
are rewarded in proportion to how many
hours they’ve worked.
Over the past year, €200 million were
set aside for Tack!. All co-workers who’ve
been with IKEA for at least five years are
qualified to receive the pension contribution
if IKEA Group sales targets are reached.
Tack! follows last year’s introduction of
the One IKEA Bonus programme, an annual performance-driven bonus system that’s
linked to individual salary levels and paid
out annually when set goals are reached.
“Our ambition is to be an employer
of choice”, says Petra. “These two programmes strengthen IKEA as a great place
to work. I think they help our co-workers
feel appreciated and they help attract talented and passionate people to join us.”
2 3
i
A G R E AT P L A C E T O W O R K
The IKEA values guide us in
everything we do
We want a diverse and
inclusive workplace
Daring to be different
“Diversity is having a mix
of different people at IKEA.
Inclusion is creating the
conditions that make them
succeed. And one doesn’t go
without the other. Under this
umbrella we identify different groups and work actively
with gender, age, ethnicity
and sexual orientation. Overall, equality is a human right.
When people can be themselves at work, their uniqueness makes IKEA better.”
Accept and delegate responsibility
Simplicity
Constantly being “on the way”
Striving to meet reality
Humbleness and willpower
Leadership by example
Constant desire for renewal
Cost consciousness
Togetherness and enthusiasm
Sari Brody, Leadership and Diversity
Manager, IKEA US
i
Moving gender discussions into action with
the IKEA Women Open Network
The IKEA Women Open Network
(IWON) aims to support gender balance in leadership positions as well
as an inclusive culture that reflects
the contributions of women and men
alike.
In FY14, 600 IKEA leaders from more
than 40 countries took part in IWON meetings hosted in Berlin, Shanghai, Lisbon
and Philadelphia. The meetings promote
discussion, learning and inspiration, ultimately empowering the participants to
change things for the better in their home
organisations.
Enabling more women to reach and
thrive in management positions is essential for our growth as a company and for
being a great place to work. And we know
that when we create better conditions for
women, modern men will benefit too.
IWON is one of several initiatives taken
by the IKEA Group to reach gender equality. Other tools include recruitment, development, mentoring, coaching, flexible
work arrangements, and so forth.
“Since we started IWON, there’s been
a series of successful gender initiatives in
markets such as Austria, Japan, Italy, Switzerland and the US. The network gives our
leaders motivation, a great network, and
clear support from the company”, says
Sari Brody, Leadership and Diversity Manager.
“Different countries have different
challenges, so we don’t tell our leaders
what to do, instead we empower them to
Gender equality at IKEA Group
We want a workplace where 50%
of leadership positions are held by
women and 50% by men. Today,
more than half of our co-workers
are women, as are 47% of our
19,000 managers and 25% of Group
Management. We’ve come far, but
there’s a lot left to do.
act where it’s needed”, Sari says. “This
ranges from opening day care centres in
our stores, and supporting men and women with small children to work part-time,
to a chance of sharing management jobs
and much more.”
2 4
A G R E AT P L A C E T O W O R K
“The IKEA Talent Approach is
rooted in the belief that everyone
is a talent. It’s built on our values
and the view that all of us have
strengths and the potential to
grow. We are rich in talent at IKEA.
Let’s focus on getting even better
at spotting and growing talents.
It’s a responsibility for each one
of us as well as for all our leaders.
IKEA’s growth will not happen on
its own, it’s created by us and we’ll
recruit about 75 000 new people
until 2020. That is a fantastic
challenge!”
We’re not afraid to do things differently
to create the right conditions for
good work-life balance
Ulrika Biesért, IKEA Group Global Talent Manager
Nicole Reitinger (left) and Michaela Foissner-Riegler share the role of Store Manager at IKEA Haid in Austria.
At the IKEA Haid store in Austria, two
women share the store manager position. It’s an arrangement everyone is
happy with. The store has two talented
and dedicated leaders and those leaders
haven’t had to choose between motherhood and a career.
IKEA Austria has put a lot of effort into
creating gender equality, and provides
plenty of support for women who want
to continue their careers after maternity
leave. Few other employers in Austria do
this.
Giny Boer was Austria’s country manager in FY14, now she’s the regional manager for South and East Europe. When she
first entered the workforce she noticed
women didn’t get the same opportunities
as men in the workplace, and as she grew
older she was surprised by how many of
her friends ended their careers after having children. Gender equality wasn’t initial-
ly on Giny’s agenda, but it became obvious
it needed to be.
“There is no one solution to support
women at IKEA, especially when women
become parents. But, it’s always possible
to find ways to support your co-workers
and leaders”, she says.
The managers of the IKEA Haid store
aren’t alone in their job sharing solution.
Two women split the responsibilities of the
store manager position at IKEA Cologne
Am Butzweilerhof in Germany, too.
At IKEA, gender equality isn’t only
about numbers; it’s also about creating
the right conditions for people to succeed.
Job sharing is just one way of enabling coworkers to grow and develop with IKEA
when they have young children. And it’s
an option for men and women alike.
2 5
A G R E AT P L A C E T O W O R K
New US wage structure is
about making IKEA a great
place to work
Robert Morgan, an Exchange & Returns
co-worker at IKEA Baltimore, US.
IKEA Japan sets new
standard for compensating
part-time workers
While IKEA Japan’s total compensation
and benefits package for their part-time
co-workers was already better than the
market standard, salary ranges were
adjusted in FY14 to create equal conditions for all co-workers.
A growing number of part-timers in Japan — most of them women — are being paid
less per hour simply because they don’t work
fulltime. At IKEA, we want to be an inclusive
employer that offers the same salary range,
benefits and possibilities for the same work
done.
“Even if we were better than the market,
this way of treating part-time co-workers was
not fully according to our values, so we decided to change it”, says Reika Izumikawa,
Country HR Manager, Japan.
Since the new standard was launched,
the amount of job applications to IKEA Japan
has doubled.
“It’s all about equality, inclusion and job
security, so it really feels good. And when our
co-workers grow, as individuals and in their
professional roles, IKEA grows too”, Reika
says.
In FY14, IKEA US announced a new
hourly wage structure that focuses on
the needs of the co-worker instead of
market standards. The new wages are
based on the local living cost in each market and when the change goes into effect in
January 2015, half of IKEA US co-workers will
get a 17% wage increase on average.
“I thought the change was just great. You
are working hard and the company shows
that they are appreciating it. It benefits you
personally and it benefits the company”, says
Joanne Clark, IKEA Food co-worker at the
Conshohocken store.
This approach to wages is setting a new
standard in the country because, although
some other US retailers have recently made
wage changes too, they have been based on
competitors’ rates and market standards, not
the reality of the local living cost.
“It’s about investing in our co-workers,
and we believe that it will be a win-win-win
for them, our customers and our stores”,
says Rob Olson, IKEA US Acting President
and CFO. “The transition to the new hourly
wage structure is not only the right thing to
do, it makes good business sense.”
Creating good conditions for co-workers
isn’t just about wages; it involves offering
enough work hours, too. That can be tricky
in a retail environment where customers’
shopping habits, like visiting mostly on evenings and weekends, have to be taken into
account. Currently, we’re looking into different solutions, such as offering co-workers the
option to take on multiple roles to make up a
full-time job.
Any additional training a co-worker might
need would be provided. “Our guiding belief
is that every co-worker is a talent”, says Rob
Olson. “So, we want to not only invest in fair
working conditions, we want to put resources
into developing our co-workers too.”
2 6
i
PEOPLE AND PL ANE T POSI T I VE
76%
of cotton from more sustainable
sources* – on track for 100% by
August 2015. In FY14, we invested
€1.34 million in projects to help
around 100,000 farmers improve
their incomes and produce cotton
using less water and chemicals.
More sustainable sources for cotton are:
Better Cotton, cotton grown to other sustainability standards in the US and cotton from
farmers working towards the Better Cotton
Initiative standards.
*
Becoming People & Planet Positive
is about transforming our business
We have ambitious growth plans and
we know that we can only achieve our
goals within the limits of the planet.
That’s why sustainability is integral to
our business strategy and essential to
our success.
Responding to sustainability challenges
requires transformational change, and for
a business like ours, it means going all-in,
embracing sustainability by innovating and
reinventing what we do. That’s why IKEA
will look different in the future, including
the way we operate, the products and services we offer, and how they are produced
and distributed. To get there, we’ve set ambitious goals in our sustainability strategy,
called People & Planet Positive. In this chapter you’ll find stories and updates from each
of the three aspects of our strategy:
- enabling people to live a more sustainable
life at home;
- becoming energy and resource independent;
- contributing to a better life for people and
communities.
See our Sustainability Report FY14 for more information.
2 7
PEOPLE AND PL ANE T POSI T I VE
We’re enabling our
customers to live a more
sustainable life at home
LED bulbs use 85% less
energy than incandescent
bulbs and last for more
than 20 years. We halved
the price of one of our most
popular LED bulbs (LEDARE)
last year, meaning many
more people can afford to
save energy at home.
Our customers want to live more sustainably at home and our research
shows they want IKEA to make that
possible. There shouldn’t have to be a
compromise on price, style, quality, functionality or sustainability. That’s why we
create affordable products that combine
all these qualities. It’s one of the ways we
support millions of people to save and generate energy at home, cut water use and
reduce waste.
Promoting healthy living is a strategic
goal we added to our sustainability strategy
in FY14.
In order to support our customers in
living a more sustainable life at home, we
have to meet people’s needs at home today
and in the years to come. That’s why we’re
testing ideas about how people can live,
sleep and work more sustainably in the future. This will help us improve our products
and services. For example, our research
and testing have already led us to expanding our affordable home solar panel offer
and we’ve started selling electric bicycles in
some stores (they encourage a more active
lifestyle for a broader age group by taking
the puff out of cycling uphill).
LEDs are a great product because they
use 85% less energy than incandescent
bulbs and last for more than 20 years.
Like all our products, we want to make this
technology affordable to as many people as
possible, so we invested in improving the
capacity and efficiency of our LED supply
chain. This made it possible for us to halve
the price of one of our most popular LED
bulbs (LEDARE) last year, meaning many
more people can afford it. In FY14, 75% of
the lighting products we sold were LED or
compatible with LED bulbs.
We measure sales of all products that
enable people to live more sustainably at
home and we aim to increase the yearly
sales value of these products fourfold by
the end of FY20, compared with FY13. In
FY14, the sales value of products that promote a more sustainable life at home was
€1,015 million, compared with €641 million
in FY13 (a 58% increase).
2 8
PEOPLE AND PL ANE T POSI T I VE
IKEA Group suppliers
go renewable
We’re striving for energy
independence
It’s part of our normal business relationship with all our suppliers to
work with them to improve energy
efficiency.
Through our Suppliers Go Renewable project, we’re working more closely
with groups of suppliers to enable them
to save money by becoming more energy efficient, and to generate and use
more renewable energy, just like we do.
We use what we learn from these group
projects — a total of 40 in FY14 — to
support and educate more suppliers to
improve energy management.
Project participants are saving an
average of 15% of their energy use, with
investment payback periods of as little
as three years. In FY14, Asian Fabrics, a
textiles supplier in India, achieved 100%
energy independence after installing a
1.5MW PV array and four wind turbines
with a 20 MW capacity. The company did
not receive government subsidies and
estimate a payback period of up to eight
years. Asian Fabrics has showcased its
project to other IKEA suppliers, to inspire them to make similar renewable
energy investments.
IKEA Group is now committed to own and operate 224 wind turbines throughout the world.
Climate change is possibly the greatest challenge of our time. Tackling it
gives us the opportunity to innovate
and lead by example.
We take responsibility for the energy
needs of our growing business so that by
2020, we will produce renewable energy
equivalent to 100% of our total energy use.
By the end of 2015, we aim to have invested and committed to invest EUR 1.5
billion in renewable energy projects, mainly wind farms and photovoltaic (PV) solar
panels installed on our buildings.
We have already committed to own
and operate 224 wind turbines around the
world and have installed 700,000 solar
panels on our buildings. In FY14, we invested in our first wind farm in the US, which
was our largest renewable energy investment to date. When operational, the wind
farm will produce a third more energy than
IKEA consumes in all our stores, distribution centres and factories in the US.
Making home
solar affordable
“There’s really no excuse not to
install solar in your home”, says
Alan Cotton, who has Hanergy solar
panels, bought at IKEA, on his roof
near Southampton in the UK.
“Installation was so easy. It took just
one day to get it up and running, and
we’ve halved our electricity bills within
two months. It’s changed our lives.”
Solar energy is a great way for
families and businesses to reduce energy
costs and cut their carbon emissions.
During FY14 we completed the
rollout of our solar panel offer, in
partnership with Hanergy, to all 18 UK
stores at prices affordable to people with
smaller homes than the average solar
customer. This has made solar a viable
investment option for more people.
An average UK household can halve
their electricity bills by installing solar
panels. The payback time can be as
little as seven years and we expect this
to fall as energy prices rise. After that
point the system will produce renewable
energy for free over the lifespan of the
panels which is at least 25 years.
We are now rolling out the service
at our stores in the Netherlands and
Switzerland, and will cover six additional
countries in FY15 and beyond.
2 9
PEOPLE AND PL ANE T POSI T I VE
“The role of leaders is to
set visionary targets. We
need bold commitments
from policy makers about
the direction we should
move as a society.”
Peter Agnefjäll, President & CEO,
IKEA Group
“We are a home furnishing
company, but we are also
becoming a renewable
power company. Renewable
energy is common sense
energy. There is no peak
sun or peak wind.”
Taking part in Climate Week
NYC and the UN Climate Summit
Steve Howard, Chief Sustainability
Officer, IKEA Group
Peter Agnefjäll (left) and Steve Howard joined hundreds of thousands of people in New York, US for the People’s Climate March.
Nearly half a million people took to
the streets of New York for the People’s Climate March on September
21, 2014, urging world leaders to
take action on climate change at the
UN Climate Summit on September 23.
Peter Agnefjäll, our CEO, and Steve Howard, our Chief Sustainability Officer, were
among the marchers.
During Climate Week, Peter reflected
on the march: “It was truly great to see all
the people out on the streets of New York.
There can be absolutely no doubt what direction they want policy makers and businesses to take”. He was speaking at the
Clinton Global Initiative plenary session,
and over the week both Peter and Steve
were involved in many more discussions,
speeches, and campaign launches.
Later addressing the UN Climate Sum-
mit, Peter emphasised that businesses
like IKEA stand behind policy makers who
want to see a solution to climate change
and that bold, long-term climate targets
are good for business. He highlighted the
importance of encouraging all parts of
society to play a role in tackling climate
change. Companies like IKEA are in a
great position to spur innovation and renewal. But policy leadership is crucial to
accelerate this.
Climate Week also saw the launch of
two global initiatives to encourage the
move towards a low-carbon future. We
Mean Business is a coalition of global businesses and organisations including Business for Sustainable Responsibility (BSR),
Carbon Disclosure Project (CDP), CERES
and World Business Council for Sustainable Development (WBCSD), that creates
a united voice for businesses to speak to
governments and encourage climate policy. RE100 is a group of global corporations including BT, H&M, and Mars, who
are working towards using 100% renewable power. The IKEA Group is a founding
partner and active member of both these
initiatives.
For customers and co-workers who
could not make it to New York, we supported the #Walkthewalk social media
campaign. This gave people around the
world the chance to get involved through
Facebook, Twitter and IKEA.com. Customers and co-workers could post pictures of
themselves walking, adding the hashtag
to join the People’s Climate March virtually.
It was the first time IKEA has ever
participated in this kind of global climate
change campaign, and we plan to be involved in more of the world’s most important debates on climate change.
3 0
PEOPLE AND PL ANE T POSI T I VE
Contributing to a better life
for people and communities
Ceramic bowls from the BEDRIVA limited collection are being prepared for
firing at a factory in Doi Tung, Thailand. The collection was a collaboration
between IKEA and the Doi Tung Development Project.
We are committed to having a positive
influence on people’s lives throughout
our entire value chain; from supporting positive economic, social and environmental development, to making
people and their rights a top priority.
Our code of conduct for suppliers
(IWAY) ensures we contribute to better
lives for workers and support decent jobs
throughout our supply chain.
In FY14 100% of home furnishing suppliers were approved to the IWAY stand-
ard, or were being phased out or pending
a scheduled audit. We are extending IWAY
requirements beyond home furnishing suppliers to cover global transport service providers, IKEA Food suppliers, selected suppliers for our retail operations, suppliers to
our Indirect Material and Services unit and
IKEA Component suppliers
We know we can have a bigger impact
by working with our direct suppliers to expand IWAY to their suppliers (our sub-suppliers). Our direct suppliers are responsible
for communicating IWAY to sub-suppliers.
They ensure that critical sub-suppliers
— those involved in higher-risk processes
or based in higher-risk locations — achieve
compliance with our IWAY Musts (an essential set of requirements new suppliers must
meet before we sign a purchase agreement). We assess compliance through audits conducted by the direct supplier or a
third-party.
We are taking action to empower people in our extended supply chain, focusing on migrant workers, home workers
and those with limited access to business
resources or skills development. Their
voices often go unheard. They can end
up facing poor working conditions and
living in poverty.
We tackle these challenges by developing relationships based on partnership and
mutual benefit, rather than charity.
Protecting children’s rights is especially
important to us and we do this through advocacy, awareness raising and supporting
families in vulnerable communities.
i
The requirements of our supplier
code of conduct (IWAY) include:
- No child labour
- No forced or bonded labour
- No discrimination
- Freedom of association
- At least minimum wages and overtime compensation
- A safe and healthy work environment,
preventing pollution to air, ground
and water and work to reduce energy
consumption
A weaving centre that
empowers workers
“I earn four times as much
now, but the biggest change
is that I feel happier. I have
friends here and we get the
chance to talk about life
while we are working. I’m
more of an equal partner
with my husband now.”
Én Nguyèn Thi
Én Nguyèn Thi, 41, was one of the first
women who learned to make NORDRANA when IKEA production began at the
Thanh Binh weaving centre. Like many
other women in Vietnam, Én used to
work at home, looking after the family’s
house, two children, a pig, hens, rice and
sugar cane fields. She did a little crocheting on the side to earn money.
Now she has a paid job outside her
home, with a contract, flexible working
hours, Sundays off, accident insurance
and an opportunity to boost her wages.
There are benefits to giving home workers a work centre, including securing
good work conditions that meet our set of
standards for all suppliers (called IWAY).
Together with a supplier, we’ve opened
several new handicraft centres in northern Vietnam, giving more than 4,000
women a workplace outside of their
homes and IKEA customers the handcrocheted NORDRANA baskets.
3 1
PEOPLE AND PL ANE T POSI T I VE
IKEA Foundation works for a
better, fairer world for children
In 2014, IKEA Foundation donated €104 million to projects and programmes that protect children, provide a better life for refugees, promote education and empower girls and women.
The IKEA Foundation* is an independent charitable foundation that focuses
on protecting children from child labour, providing a better life for refugee children, and empowering girls
and women.
Through grants and product donations
from the IKEA Foundation, conditions for
families living in some of the world’s poorest communities are improved.
The IKEA Group supports IKEA Founda-
tion in its charitable causes, by providing
know-how, co-workers’ time and donation
of products. Both to receivers shared with
IKEA Foundation and others.
By 2015, more than 100 million children
will have benefitted from IKEA Foundation
supported programmes. In total, the foundation donated €104 million in 2014.
Since 2003, the IKEA Foundation
has donated €1 to Save the Children and
UNICEF for every soft toy sold in IKEA
*The IKEA Foundation manages philanthropy for the Stichting INGKA Foundation, the owner of the IKEA Group.
stores in November and December. The
money is spent on children’s educational
projects in some of the world’s poorest
communities. Since the campaign started,
donations from the annual IKEA Soft Toys
for Education Campaign have totalled €67
million, helping more than 11 million children in 46 countries enjoy their right to a
quality education.
Following this success, the Brighter
Lives for Refugees project was launched.
For every LEDARE light bulb sold in February and March 2014, the IKEA Foundation
donated €1 to the UN High Commissioner
for Refugees (UNHCR), providing sustainable lighting, renewable energy and primary education in refugee camps across
Africa, Asia and the Middle East. The campaign raised €7.7 million for UNHCR in its
first year while encouraging more people
to adopt the use of energy-efficient LEDs.
3 2
F INANCE
This positive performance in FY14,
resulting in a net profit of €3.3 billion,
contributed to our continued strong
financial position and ability to further
develop our business and our offer
to customers.
Increased sales, new co-worker
benefit initiatives and a
€3.3 billion net profit
Our guiding principle, to earn money before we spend it, enables us to make investments that are good for customers and the IKEA Group.
Our Principles
Our roots in Småland are the origin of our
values and our key financial principle, which
is to earn money before we spend it. A solid
financial foundation and a good profit level over the years give us the freedom to
choose our own way and make long-term
investments based solely on what is good
for our customers and IKEA Group.
We work hard to create affordable pric-
es for the many people, which is why we
always strive to find ways to lower costs
throughout our business. For example,
we work with new, more cost-efficient and
sustainable material, we look at innovative
solutions in the entire value chain, from
sourcing to end-user, and we collaborate
with our suppliers to find smart solutions in
packaging and transport.
Our Performance
Total sales increased by 5.9% (when adjusted for currency impact) to €28.7 billion.
See the fact box on p. 33 for an explanation of currency impact. Translated into the
Euro, sales increased by 3.0%. Comparable stores were up 3.7%. Together with the
rental income from our shopping centres,
our total revenue was €29.3 billion, a 2.8%
increase over FY13.
In FY14 we saw growth in all sales channels: existing stores, the opening of new
stores and online.
IKEA Food had a positive development
and showed 8.6% growth (adjusted for currency impact). IKEA Industry, that became
an integrated part of IKEA Group last year,
increased their contribution to growth and
the operational result for FY14.
Our net profit remained the same as in
FY13, the main reason being the contribution we made to our co-worker loyalty programme, Tack! (€200 million), as well as
the growing number of co-workers taking
part in our One IKEA Bonus programme
(€98 million). However, adjusting for these
expenses, our cost percentage decreased.
The gross margin decreased by 0.4%
to 42.9%. This was expected and is due to
larger price reductions compared to FY13.
But the negative effect on margins was
partly balanced by lower purchase prices
and lower transport costs.
Continued on next page...
3 3
F INANCE
...continued from previous page
Our net financial result improved significantly, supported by favourable interest
rates and currency rate movements. We
did not incur any credit losses on our securities portfolio, which increased to €15.8
billion during FY14. At the request of our
owner, Stichting INGKA Foundation, a dividend of €660 million was paid (FY13 €3 billion).
Our Markets
In the past year, we grew in almost all our
markets, with China, Russia and Hungary
being the fastest growing. North America
performed well and while the challenging
economic situation may not be over, Europe
continued to show improvements. An especially positive sign was the growth in most
of southern Europe where Portugal did particularly well and the situation in Spain is improving quite quickly. In August, we opened
our first store in Croatia and we took steps
toward establishing our retail presence in
India. Online sales, established in 13 of our
27 markets, showed strong growth. IKEA.
com had more than 1.5 billion visits.
To us, being available also means offering products affordable to many people. In
FY14, we lowered prices by 1% on average
(FY13 0.2%).
Our Investments
During FY14, the IKEA Group invested €1.7
billion in stores, factories, renewable energy and shopping centres, with the majority
of this amount being spent in the retail sector. True to our financial principle, investments were funded with our own cash. Our
investments in renewable energy strongly
support the realisation of our sustainability targets. During FY14, we committed to
invest in wind farms in the US and Poland.
When these projects are complete, we’ll
have 224 windmills in nine countries. We
continue to develop our renewable energy
strategy and have planned significant investments for FY15.
i
Currency Impact
The IKEA Group is based in the
Netherlands and therefore reports
its financial results in Euro (€). This
means that all figures in local currencies from the 42 countries in
which we operate are translated into
Euro and then accumulated. Since
currencies fluctuate, companies will
always face currency effects when
doing these translations. The Euro
showed strong development in FY14,
so the contribution from certain
non-Euro countries to our financial
result was smaller than the previous
year. In order to show the underlying
trend when adjusting for this effect,
IKEA Group also communicates the
currency-adjusted development. For
FY14, the currency adjusted sales
growth was 5.9%, while the straight
conversion into Euros shows a sales
increase of 3.0%.
Taxes
The IKEA Group pays corporate
income taxes in accordance with
laws and regulations, wherever we
are present as retailer, manufacturer
or in any other role. We have a strong
commitment to contribute to the societies
where we operate.
In FY14, the IKEA Group corporate
income tax charge amounted to €801
million. The effective corporate income
tax rate was 19.3%, up from 18.9%. In
addition, we incurred local and other taxes
such as property taxes, business taxes,
custom duties and environmental taxes.
These taxes amounted to €715 million in
FY14. So, in total, the tax charge in FY14
for the IKEA Group amounted to more
than €1.5 billion. During the last five years
(FY10-14), corporate income tax and other
taxes amounted to about €6.8 billion for
the IKEA Group.
IKEA Group regards a responsible
approach to taxation as a fundamental
part of good governance as well as being
consistent with our sustainability agenda.
3 4
F INANCE
TOTAL REVENUE IN BILLIONS OF
EUROS 2003-2014
CONSOLIDATED INCOME STATEMENT
SEPTEMBER 1, 2013 - AUGUST 31, 2014
9,128
8,694
Operating income
3,793
4,026
352
81
4,145
4,107
801
775
3,344
3,332
15
15
3,329
3,317
Total financial income and
expense
Income before minority
interests and taxes
Tax
Income before minority
interests
Minority interests
Net income
29.3
Operating cost
28.5
12,720
27.6
12,921
25.2
Gross profit
23.5
15,786
21.8
16,372
21.5
Cost of sales
20.0
28,506
17.5
29,293
15.0
Revenue
12.9
FY13
11.4
FY14
(in millions of Euros)
last year’s reported
The 2013 comparative numbers have been adjusted from
g rules in 2014.
numbers. This is to account for changes in pension accountin
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
t to acquire the remainOn December 16, 2014, IKEA Group signed an agreemen
ing 51% of the shares of Inter IKEA Centre Group A/S.
2003
version of the
The included abbreviated financial statements are an abridged
as included in the Annual
consolidated financial statement of INGKA Holding B.V.
report dated DecemReport for the financial year 2014. An unqualified auditor’s
Holding’s Annual
ber 1, 2014, was issued on these financial statements. INGKA
of Commerc e.
Report for 2014 will be available through the Dutch Chamber
which these abbreviINGKA Holding’s consolidated financial statements, from
prepared in accordanc e
ated financial statements have been derived, have been
with Part 9 of Book 2 of the Dutch Civil Code.
The IKEA Group total revenue includes sales of articles and the rental income
from our shopping centre operations.
3 5
F INANCE
TIES
CONSOL IDATED BALANCE SHEET — EQUITY AND LIABILI
CONSOLIDATED BALANCE SHEET — ASSETS
FY14
FY13*
17,322
17,036
2,984
2,534
20,306
19,570
Inventory
4,927
4,257
Receivables
2,548
2,193
Cash and securities
16,886
16,000
Total current assets
24,361
22,450
Total assets
44,667
42,020
(in millions of Euros)
Property, plant and equipment
Other fixed assets
Total fixed assets
2014 — TOTA
L ASSE TS
€4 4,667 mill
ion
FY14
FY13*
31,608
29,048
Long-term liabilities
1,550
1,898
Other non-current liabilities
1,858
1,791
Total non-current liabilities
3,408
3,689
Short-term liabilities
4,397
4,763
Other payables
5,254
4,520
Total current liabilities
9,651
9,283
44,667
42,020
(in millions of Euros)
Group equity
Total equity and liabilities
ES
2014 — TOTAL EQUI TY AND LIABILITI
€44,667 million
2004 — TOTAL ASSETS
€19,143 million
Property, plant and equipment
39%
Property, plant and equipment
39%
Cash and securities
38%
Cash and securities
32%
Inventory
11%
Inventory
12%
Other fixed assets
7%
Receivables
9%
Receivables
5%
Other fixed assets
8%
“Fixed assets” mainly consist of our own stores, warehouses, factories and shopping centres. “Cash
and securities” is both money we need to run the business, but also excess funds.
2004 — TOTAL EQUIT Y AND LIABIL ITIES
€19,143 million
Group equity
71%
Group equity
48%
Other payables
12%
Long-term liabilities
22%
Short-term liabilities
10%
Short-term liabilities
14%
14%
Other non-current liabilities
4%
Other payables
Long-term liabilities
3%
Other non-current liabilities
2%
The majority of our assets are funded with our own money, reflected in Group Equity of €31.6
billion. “Liabilities” consist of both long and short-term funding, as well as the payables connected
with running the business. During FY14, we continued to repay our loans.
*The 2013 comparative numbers have been adjusted from last year’s reported numbers. This is to account for changes in pension accounting rules in 2014.
3 6
GROUP MANAGEMEN T
Meet the group
management team
From left to right: Martin Hansson, Petra Hesser, Jesper Brodin, Steve Howard,
Peter Agnefjäll, Helen Duphorn, Leif Hultman, Alistair Davidson.
3 7
GROUP MANAGEMEN T
Peter Agnefjäll
Jesper Brodin
Alistair Davidson
Helen Duphorn
President & CEO
Range & Supply
CFO
Corporate Communications
“In September, I was invited to the
UN Climate Summit in New York,
where I got the chance to talk about
how we see sustainability as a driver
of innovation and part of making
IKEA better. We have ambitious plans
to grow, to become more accessible
and have a positive impact on people
and the planet and I was really proud
to present our approach and achievements. With our global reach we
have a huge opportunity to make a
difference!”
“One of our biggest challenges is to
continue developing great products at
low prices in a future where more and
more people share our earth’s limited
resources. During the year, we’ve
invested heavily in material and production techniques to create resource
efficient and sustainable solutions.
I had an opportunity to follow this
journey closely. I visited families to
understand their needs at home and
went to a bamboo plantation to study
this beautiful and sustainable material. I saw development of products
directly on the factory floor, made
possible thanks to our knowledge of
life at home, materials, design, function and production.
I’m proud that we now offer Democratic Design products of
bamboo, such as RÅGRUND, DRAGAN
and VARIERA, all created for a better
everyday life at home.”
“A strong financial performance in
FY14 let us close the year with the
main goals of our ambitious growth
strategy well in sight. The continued
positive development of IKEA allows
us to make progress on many investments, initiatives and projects. With
this agenda, and supported by a clear
governance structure, we will together maintain IKEA as a strong, trusted
and growing company.
The One IKEA Bonus plan and
Tack! show we are focused on our coworkers too, in addition to continued
investments in renewable energy. The
problem I have is that time flies too
quickly when you are having fun!”
“Communication is all about interaction and I think it’s thrilling to
see how we connect with people
all over the world today, no longer
only through our stores, but also
online and via mobile phones. Of
course we want to be available
for our visitors, when, where and
however they want to meet us.
Our multichannel thinking means
new ways of working and close
cooperation between many colleagues and functions within IKEA
– this is an exciting journey for us.
In FY14, we improved our website
and developed new solutions for
our mobile applications.
Much remains to be done, but
together we have taken good steps
to improve our availability at home
and on the go. And, as you read
this, we are onto the next steps...”
3 8
GROUP MANAGEMEN T
Martin Hansson
Petra Hesser
Steve Howard
Leif Hultman
Retail & Expansion
Human Resources
Sustainability
IKEA Industry
“I like the idea that IKEA is not selling products, only solutions. I have
visited many stores in many markets
over the last 12 months. I enjoy listening to our co-workers explain the
stories behind the room settings in
the stores. Every room setting has a
story behind it. Who lives there, what
they do, what they like etc. based on
real insights from home visits in the
market.
We conduct many home visits where we map the findings and
make conclusions. Conclusions about
the activities and needs in people’s
homes.
Our interior designers make all
this knowledge come alive in the
room setting by creating relevant
and inspiring solutions based on the
needs. Inspirational solutions at a
price level that is affordable.”
“The IKEA vision ‘to create a better
everyday life for the many people‘,
continues to inspire me in my daily
work. In the past year, our actions
confirmed our focus on co-workers.
We continued to improve basic
terms and conditions of employment, and we described how we
attract, recruit and develop people
at IKEA based on the mindset that
every person is a talent.
Also, our new loyalty programme Tack!, and the One IKEA
Bonus programme recognize all
co-workers’ contributions to our
success. It’s important for me that
whatever we do has a positive impact on our co–workers.”
“I am co-responsible for sustainability together with my 147,000
colleagues and it’s fantastic to see
what we can achieve when we work
together. This year we stepped closer
to energy independence, installing
over 150,000 solar panels and investing in our largest wind farm to date.
We helped millions of people to
live more sustainably through efficient and affordable LED. And we
supported decent jobs in our supply
chain by maintaining 100% approval
to our IWAY code of conduct at home
furnishing suppliers.”
“Last year was in many ways a
year with a lot of changes for all
of us in the Industry organisation.
I have one nice memory connected to the name change of the
organisation. I visited our factory
in Paços De Ferreira, Portugal,
and everyone from the plant was
gathered in front of the factory
with one sign each, including
myself. When all of us raised our
respective signs, you could see us
together create the phrase ‘Good
Bye Swedwood’. Then, when
flipping the signs you could read
‘Welcome IKEA Industry’. It was
a nice way to pay respect to the
past and embrace the future.”
3 9
I K E A G R O U P AT A G L A N C E
IKEA Group at a glance FY14
4 0
I K E A G R O U P AT A G L A N C E
IKEA Group at a glance FY14
The IKEA Group has
operations in 42 countries
315
IKEA Group stores
In FY14, the IKEA Group opened 12
new stores in 10 countries. As of
August 31, 2014, the IKEA Group
had 315 stores in 27 countries.
Total sales FY14
12.8
27.9
28.7
FY04
FY13
FY14
179
303
315
Number of IKEA Group stores
Total sales increased by 5.9% in
local currencies to €28.7 billion.
Translated into Euros, sales
increased by 3.0%.
FY14
In FY14, IKEA Group store visits
increased 4.7% over FY13.
visits to our 14 Shopping
Centres in Russia.
€28.7 billion
FY13
million
Store visits
270 million
As of 31 August 2014, we had a total of
315 stores in 27 countries; 27 Trading
Service Offices in 23 countries; 34
Distribution Centres and 13 Customer
Distribution Centres in 17 countries;
44 IKEA Industry production units in
11 countries. In total, we have 1,002
suppliers, including external suppliers.
FY04
716
1,002
Suppliers1
In FY14, the IKEA Group had 1,002
home furnishing suppliers in
51 countries.
Billions of Euros
147,000
Total co-workers
Europe: 114,000;
Americas: 19,000;
Asia & Australia: 14,000;
Russia (included in Europe
total): 12,000.
Includes IKEA Industry which accounts
for 12% of the total production with 44
production units in 11 countries. 2More
sustainable sources for cotton are: Better
Cotton, cotton grown to other sustainability standards in the US and cotton from
farmers working towards the Better Cotton
Initiative standards. 3More sustainable
sources for wood are: Forest Stewardship
Council® certified or recycled.
1
76%
41%
More sustainable cotton production
uses less water, chemical fertilisers
and pesticides, while increasing
profit margins for farmers
We’re on track to reach 50%
by 2017. This is in addition
to the requirement that all
suppliers meet our IWAY
Forestry Standard.
Cotton from more
sustainable sources 2
Wood from more
sustainable sources 3
1.5 billion
Visits to IKEA.com
IKEA.com had more than 1.5
billion visits during FY14, up
15% from FY13.
4 1
I K E A G R O U P AT A G L A N C E
Stewardship
100% Forest
Council certified paper
®
75%
The IKEA Catalogue is now the largest
print production ever to be printed on
100% FSC® certified paper. 217 million
copies of the IKEA catalogue were
printed in 32 languages.
of all lighting
products sold in
FY14 were LED or
LED compatible.
46 million
app visits
The IKEA catalogue app was
opened 46 million times.
€104
million
Donated by IKEA Foundation
The IKEA Foundation donates to projects
that work to protect children from child
labour, provide a better life for refugee
children, and empower girls and women.
100 million children will benefit from
current IKEA Foundation-funded
programs by FY15.
IKEA Industry
IKEA Industry manufactures wood-based
furniture and boards. It’s part of the IKEA
Group and its role is to develop and manage
production capacities. In total, IKEA Industry
has 20,100 co-workers in 44 production units
located at 36 sites in 11 countries.
€1.46
billion
IKEA Food turnover
IKEA Food is comprised of the
IKEA Restaurant, IKEA Bistro,
IKEA Swedish Food Market and
the IKEA co-worker restaurant.
224
Wind turbines
We have now committed to own
and operate 224 wind turbines
around the world, up from 137
in FY13. And there are 700,000
solar panels installed on our
buildings worldwide.
9,500
products
The IKEA range consists of about 9,500 products.
Every year we renew our range, launching
about 2,000 new products. We have 15 in-house
designers and 75 external designers via contracts.
4 2
I K E A G R O U P AT A G L A N C E
The IKEA Group
of companies
The IKEA Group of companies (INGKA Holding
B.V. and its controlled entities) has an ownership structure that ensures independence
and a long-term approach. Stichting INGKA
Foundation in the Netherlands is our owner,
and its funds can only be used in two ways:
reinvested in the IKEA Group or donated for
charitable purposes through the Stichting
IKEA Foundation.
INGKA Holding B.V. is the parent company
of the IKEA Group, located in Leiden, Netherlands. As per 15 January 2015, its Supervisory
Board consists of: Lars-Johan Jarnheimer
(Chairman); Stina Honkamaa Bergfors; Tore
Bertilsson; Luisa Delgado; Jonas Kamprad;
Göran Lindahl; and Lone Fønss Schrøder. Ingvar Kamprad, the founder of IKEA, is senior
advisor to the Supervisory Board.
The IKEA Group is led by its President and
CEO, Peter Agnefjäll, together with Group
Management.
The IKEA Group operates throughout the
whole value chain from range strategy and
product development to production, distribution and retail. This includes our own
manufacturing units, trading service offices,
customer distribution centres and 315 stores
in 27 countries. In total, the IKEA Group has
operations in 42 countries.
The IKEA Group franchises the IKEA retail
system from Inter IKEA Systems B.V. in the
Netherlands. Inter IKEA Systems B.V. is the
owner of the IKEA Concept and the worldwide
IKEA franchisor.
Charity
Stichting INGKA Foundation
Owner of the IKEA Group
Stichting IKEA Foundation
Management of financial assets
Stichting IMAS Foundation
The IKEA Group
(INGKA Holding B.V. and its controlled entities)
Chairman of the supervisory board, Lars-Johan Jarnheimer*
President and CEO, Peter Agnefjäll
Production
Range &
Supply
Retail &
Expansion
44
Production Units
9,500
Products
315
IKEA Group Stores
20,100
Co-workers
27
Trading Service
Offices
110,800
Co-workers
13
Customer Distribution
Centres
34
Distribution Centres
16,100
Co-workers
Group Functions
Business Navigation & Finance
Corporate Communications
HR
IT
Legal
Risk Management & Compliance
Strategy & Process
Sustainability
Centres
Shopping centres
Asset Management
Financial & Core related assets
*Replaced Göran Grosskopf as new chairman of the IKEA Group from January 2015.
© Inter IKEA Systems B.V. 2014